This article differentiates itself from the large volume of existing literature on business groups, such as Korean chaebols, in several aspects. First, it uses productive efficiency rather than financial efficiency as a performance measure. Second, it defines chaebols in three alternative ways...

The existence of the business groups has been associated with market failure in emerging economies, and thus their performance has been argued and found to have declined with development of market institutions surrounding them. This paper takes up this issue of long-term performance of the...